← Commercial Finance Answers

HP, finance lease & repayments

Can I stop paying finance when the asset is being repaired?

Do not assume so. Payment obligations and any rights concerning a faulty asset depend on the contracts and circumstances.

The practical answer

Do not assume so. Payment obligations and any rights concerning a faulty asset depend on the contracts and circumstances.

Report defects promptly to the supplier and lender, retain inspection and repair evidence, and ask how the dispute should be handled. Seek appropriate advice if responsibilities are unclear.

Stopping payments without agreement can create a separate default issue. Budget for maintenance and downtime, and review warranty and service support before choosing a used or specialist asset.

Important

Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.

What should I do next?

Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.

Read: Compare finance structures →